O2 reduces iPhone tariff costs to get free handset

For those who sign up for 2-year contracts

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20 March 2009 10:22 GMT / By Amy-Mae Elliott

O2 has announced that from 3 April it will introduce a new 24 month tariff option for iPhone customers that will see iPhone 3Gs given away for "free" on lower tariffs then ever before.

Following AT&T's introduction of a "commitment-free" iPhone in the US, this will fuel speculation that the operators are attempting to clear down stocks of the phone in anticipation of a new model rumoured for launch this summer.

O2 says the new tariff is for those "looking for added value in return for added commitment".

Customers who sign up to the 24 month tariff can get the 8GB iPhone 3G for free at £34.26 per month and the 16GB iPhone 3G for free at £44.05 per month.

Previously the iPhone 3G 8GB was available from free only on £44.05 a month contracts while the 16GB iPhone was free only on a £73.41 a month contract.

The 24 month iPhone 3G tariff will be available through O2, Apple and Carphone Warehouse from 3 April.

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Comments

Give me a tariff that costs less than £15 or less with no included call or message allowance and I'll happily pay £100 pounds for the phone. Until then I can't justify it, I only make a couple of pounds of calls a month and maybe 2 or 3 text messages so spending loads of money on allowances I'll never use is pointless. I bought an iPod touch for that very reason, I want a mobile internet device, having one with 3G built in would be very nice but not worth £35 a month.
Posted by Paul Brown, UK
Agreed! If anything, now the iPhone costs more!! I was holding out for the price drop, but it seems like they wont be doing such a thing.

In 2 years time the iPhone 3G will be obsolete as a new iPhone is on its way, so why would anyone sign up for such a long time.

Fingers crossed they dont try to rip me off with my back-up HTC Magic.... Posted by Cameron Judd, UK
I agree that a 2-year contract was a bit unexpected, but bear in mind that the new OS3, out in June, can also be installed on current iPhone 3Gs.

Having said that, I'm also what you'd call a low user, and had really been hoping for better price cuts from O2 than this. I wonder if they're also going to cut the PAYG handset prices... Posted by Rob, UK
Oh, another thing. The end of the story above says you can sign up to the contract with Apple. You can't. They only sell the iPhone as a PAYG handset. Posted by Rob, UK
i have had both releases of the iPhone that have been released and for o2 to just give away the iPhone now will upset a lot of customers, like me who will go out, get the new contract and iPhone and cancel the existing direct debit and stick a finger in the air to o2! Posted by Matt B, UK